Job cuts in Australia’s coal sector climb to 11,000

Peabody Energy (NYSE:BTU) tipped the job cutting balance in the coal sector a bit further Tuesday as the US giant announced it is axing another 170 employees, about 5.7% of its total workforce at its Australian operations.

The news, part of the firm’s results for the second quarter of 2013, come only weeks after the miner cut around 450 contractor jobs, adding to the massive lay offs by Glencore Xstrata (LON: GLEN) and Brazilian mining giant Vale (NYSE:VALE) the previous months.

Despite the gloomy message, the company — US largest coal producer— reported a surprise second-quarter profit driven by increasing demand from local power utilities.

With Peabody’s latest job cuts in the sector, hit by low commodity prices and high costs, the total positions lost in the coal mining industry over the past year hit more than 11,000.

According to analyst, the figure may triple in the short future as more miners defer projects and cut down costs.

Cecilia Jamasmie, news editor at MINING.com, has over 15 years of experience in print media, TV, online media and public relations. She specializes in Corporate Social Responsibility (CSR) and the Latin American market. Cecilia has been interviewed by BBC News and CBC among others. She has also been syndicated by Forbes, Seeking Alpha and BIV. She holds a Master of Journalism (MJ) from the University of British Columbia, Canada, and she is currently based in Halifax, Nova Scotia.